Function approximation of total system cost for a continuous manufacturing system

This paper presents a case study conducted in a sugar mill. The multi‐level lot‐sizing model suggested by Gunasekaran where the whole manufacturing system modelled as a function of total system cost (TSC) is used for this application. This study deals with minimising the TSC of a multi‐stage, multi‐facility and multi‐product manufacturing system in which the buffer in between the stages is not allowed. The model is applied to find out the TSC and hence the fluctuating purchase prices of raw material. The consequence of implementing different costs that may occur due to change in government policies is analysed. This work has been carried out in an IBM/PC compatible system.